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Managers and Managing

Management : Art or Science??

Science

deals with knowledge acquisition while Art deals with knowledge application. While Science provides with the principles and theories , Art helps to put them into practice and hence emphasizes on experience. Thus, Science + Art is an ideal combination.

Why Do Theories fail?

1. Lack of proper understanding of the theory 2. No consideration given for system effects 3. Lack of specific applicability of a theory 4. Lack of universal applicability 5. Wrong theory

Management Principles
Increase

efficiency Descriptive and predictive, but not prescriptive. Provide scope for future researches.

Management

principles aim to attain social objectives- How?? We take resources from the society and give output to the society. The standard of living of the society depends upon the quality of management. If management is efficient, the resources are utilized efficiently thereby, enhancing the standard of livelihood.

Definition

Management: The process of designing and maintaining an environment in which individuals working together in groups efficiently achieve selected aims -Harold Koontz The Process of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by use of people and resources. -George Terry

Key Concepts

Organizations: People working together and coordinating their actions to achieve specific goals. Goal: A desired future condition that the organization seeks to achieve.

Management Is

Getting work
done through others

Efficiency Effectiveness

Organizational Performance Effectiveness and Efficiency

Measures how efficiently and effectively managers use resources to satisfy customers and achieve goals. Productivity = Output/ Input Efficiency: A measure of how well resources are used to achieve a goal. Managers must try to minimize the input of resources to attain the same goal.
Effectiveness:

A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved. Organizations are more effective when managers choose the correct goals and then achieve them.

Achieving High Performance

Organizations must provide products/services desired by its customers.

Ratan Tata provides Tata Nano for price and quality conscious customers.
Physicians, nurses and health care administrators seek to provide healing from sickness.

McDonalds localizes its contents of burgers, fries and shakes so that people get what they want.

High

performance is said to be achieved when maximum output has been produced with minimum input. Organizational performance is achieved when organization effectiveness (OE) is achieved. OE depends upon variety of external and internal factors. External factors are those outside the organization while internal factors are those within the organization.

McKinseys 7 S framework
Mckinseys

7 S framework provides internal variables that affect organizational Managers must effectiveness : view these variables in Strategy totality rather Structure than in isolation Staff to achieve System organizational Styles performance. Skills Shared Values

Additional Key Concepts

Resources are organizational assets and include: People, Machinery, Raw materials, Information, skills, Financial capital.
Managers: People responsible for supervising the use of an organizations resources to meet its goals.

Managerial Functions
Henry Fayol was the first to describe the four managerial functions when he was the CEO of a large mining company in the later 1800s. Fayol noted managers at all levels, operating in a profit or non profit organization, must perform each of the functions of:

POSDCORB + I + R

Four Functions of Management

Innovation Planning
Choose Goals

Representation

Controlling
Monitor & measure

Innovation

Organizing
Working together

Representation

Leading
Coordinate

Innovation

 Planning:

determines the strategy of the organization; What should be done? How and when it should be done? where it should be done? etc. Managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals. - Managers recruit and ensure that there is enough manpower to fill various positions in the organization.

Organizing:

Staffing

Leading: Managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals. Coordinating: Managers need to establish harmony among individual efforts towards organizational goals. Controlling: managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance.

Innovation: Provide creative ideas that result in new product development or find new uses of the old ones.
Representation: Manager needs to represent his organization to various groups that have their stakes in the organizational.

Levels of Management
Top

Middle

First-Line

Management Levels
Organizations often have 3 levels of managers:
First-line Managers: responsible for day-to-day operation. They supervise the people performing the activities required to make the good or service. Middle Managers: Supervise first-line managers. They are also responsible to find the best way to use departmental resources to achieve goals. Top Managers: Responsible for the performance of all departments and have cross-departmental responsibility. They establish organizational goals and monitor middle managers.

Managerial Roles -Mintzberg

A role is a set of specific tasks a person performs because of the position they hold. Roles are directed inside as well as outside the organization. Manager plays the following roles:
Interpersonal Figurehead Informational Monitor Decisional Entrepreneur

Leader
Liaison

Disseminator
Spokesperson

Disturbance Handler
Resource Allocator

Negotiator

What Challenges Do Managers Face?

Developing the appropriate skills for managerial work Avoiding typical managerial mistakes Making the transition from individual contributor to manager

Skills That Companies Look For

Top Conceptual Managers Skills Middle Managers Line Managers Human Skills

Human Skills Human Skills Technical Skills

There are three skill sets that managers need to perform effectively.
1. Conceptual skills: the ability to analyze and diagnose a situation and find the cause and effect. 2. Human skills: the ability to understand, alter, lead, and control peoples behavior. 3. Technical skills: the job-specific knowledge required to perform a task. Common examples include marketing, accounting, and manufacturing.

All three skills are enhanced through formal training, reading, and practice.

Mistakes Managers Make

1. Insensitive to others 2. Cold, aloof, arrogant 3. Disloyalty 4. Overly ambitious

5. Specific performance problems with the business

6. Overmanaging: unable to delegate or build a team 7. Unable to staff effectively 8. Unable to think strategically 9. Unable to adapt to boss with different style
6 10. Over dependent Makesadvocate or mentor Feb 1983 McCall & Lombardo, What on a Top Executive? Psychology Today,

The First Year Management Transition

Initial Assumptions

Reality
Cannot be bossy Manage people, not tasks Coach employee performance Fast pace, heavy workload

Exercise formal authority Manage tasks, not people

Help employees do their jobs

7 Hire and fire

Few More Management Challenges

Increasing number of global organizations. Building competitive advantage through superior efficiency, quality, innovation, and responsiveness. Increasing performance while remaining ethical managers. Managing an increasingly diverse work force. Using new technologies.